Seán Ardagh (Dublin South Central, Fianna Fail)

At this point in time, according to the green book, they have available certain amounts of money for SMEs and mortgages. The amount drawn down under those headings in both banks is substantially less than what they have available at this point in time, without the availability of cheap money. When the 1.5% coupon becomes available the banks should, in order to continue in business, be chasing loans of all descriptions. Those who this year could not get a loan for a car, washing machine or furniture will see the banks going hand over fist to give out such loans. We all know that savings are at a record high. Consumer confidence and spending are needed. This proposal will bring about significant confidence among everyone in Ireland, particularly consumers. It will also lead to significant spending which will result in more employment, more activity within the economy, more taxation and an improvement in the budget figure, which is the bottom line.

The haircut that will apply to AIB will account for €7.2 billion of the €24 billion total. According to the bank, it has made provision for €2.2 billion. Therefore, there is a shortfall of €5 billion in its provision. Its core tier 1 capital is approximately €10 billion or €11 billion. As €5 billion can be taken from that figure as a result of NAMA, further private or Government capital will be needed by the bank. I hope the private capital people will come in and avail of the opportunity available. There is market capitalisation of €2.2 billion for the whole bank. As it will be difficult to secure the remaining €5 billion, the Government will have to go in again. I hope it will be able to do as good a job as it did with the recapitalisation deal and that the interests of the taxpayer will be well looked after.

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